Sydney - Monday - August 18: (RWE Australian Business News) - Everest Babcock & Brown Alternative Investment Trust (ASX:EBI) incurred a net loss of $41.22m in the six months ended June 30, compared with a net profit of $43.52m for the first half of last year. Total investment loss was $31.19m, against investment income of $49.09m. Basic loss per unit was 22.92c, versus earnings of 44.55c. Final distribution was reduced from 23.8c to 6.5c, payable on August 29 to unitholders registered June 30. Total payout for the year is 6.5c, down from 67.2c. Net tangible assets (ex-distibution) per unit were $3.79, down from $4.07.
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Chief executive Mr Jeremy Reid said, "The first six months of 2008 have been characterised by volatile and difficult investing conditions. "As at 30 June, the major stockmarket indices had reached new lows and were close to posting the 20pc declines (from the previous high) that technically marks the beginning of a bear market. "For the six-month period under review, the S&P 500 declined 11.9pc and the MSCI World fell 12.8pc. In the same period, EBI managed to restrict its loss to a 5.2pc decline in NTA. "While this six-month decline is a disappointment, EBI's loss is less than half of those posted by the major stock indices and EBI's NTA performance since inception remains superior to both of these equity benchmarks. "Over the past months we have continued to de-risk the portfolio by reducing leverage (42.8pc loan-tovalue ratio at 31 December 2007 and 40.6pc loan-to-value ratio at 30 June 2008) and favouring investments in more conservative strategies and investment managers. "EBI now has considerable capacity to pursue capital management initiatives or invest in new opportunities. "EBI's leverage facilities are not due to be refinanced until May 2010 and the costs of US dollar denominated leverage have materially decreased due to falling US interest rates. "The investment portfolio is well diversified with the largest investment representing under 8pc of the portfolio."
EBI Price at posting:
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